IntroduWWctionww Professional Lecture Series Marketing and Culture in a Changing World DHA Suffa University 13. September 2018 Hartmut Wellerdt
What is changing ? - Demography and Society - Cultural Environment - Economic Environment - Political / Legal Environment What are the indicators and implications for Marketing ?
The External and Internal Forces for Change Internal Forces External Forces Demographic Characteristics *Age *Education Human Resource Problems/Prospects * Skill level *Gender *Unmet needs *Job dissatisfaction * Immigration *Productivity *Participation/ Technological Advancements *Absenteeism and suggestions * Manufacturing automation turnover * Office automation Market Changes Managerial Behaviour/Decisions * Mergers and acquisitions * Conflict * Leadership * Domestic and international competition * Reward systems * Structural * Recession reorganization Social and Political Pressures *War *Values * Leadership The need for change
Demography and Society 12 % growth in world population from year 2000 to 2015 - of this total growth 96 % has come from the developing world - 25 % from Africa - 62 % from Asia - 10 % from Latin America Decline of EUR population minus 1,1 % ( 2015 ) - Germany from 80 mio to 68 mio by 2100 Need for International Immigration - Germany needs to import half a mio immigrants a year to keep the working-age population stable up to 2050 at current birth and death rates
Asylum seekers / Immigrants (2015 )
Asylum seekers / Immigrants (2018 )
Germany and Immigration The Changing Face of the Country +since 2015, just under 1,5 mil refugees have arrived in Germany +Many Germans feel foreign in their own country and are afraid that Immigration is changing their homeland rapidly +Every fifth person in Germany comes from an immigration background and that number will continue to climb +Female immigrants are contributing significantly to the fact that Germany‘s birth rate is raising again DER SPIEGEL, April 14th, 2018
Demography and Society ( cont ‘ d ) Age related trends - Teenagers: a global group with many common traits ( music, fashion, brands ) - life stage, not chronology; age determins less - movement to keep young(er); stay young at heart, at least - ageing population is the dominant force for all EUR countries and Japan Pakistan 23 → Median : Germany 46 Population aged over 65 ( %) : PK 6 → D 21 40 % of all European families have no kids at all; just 5 % have 3 or more
Demography and Society cont ‘ d Changing Consumer Segmentation Principles Affluence: Money rich / time rich Money rich / time poor Money poor / time rich Money poor / time poor Youppies Dinkies LoHaS
2016 ...out of 82 million inhabitants in Germany there are more people over 65 years of age than people under 20 ...out of some 190 million Pakistani, half of them are currently under 20 years of age and 66 % are under 30 ! Pakistan’s population is projected to exceed 240 million by 2025 Source : Institute of Population Problems - "Future Population Projections" (May, 1997)
Demography and Society ( cont ‘ d ) Evolution in the structure of family - more working women/ dual income households - female employment all over EUR rose steadily to 61 % ( 2015 ) - women are increasingly financially independent - working patterns changing ( week-end, night, at home …) - attitudes towards the influence of minority groups ( immigrants ) negative in parts of the EU
Health Awareness - awareness of health and nutrition increasing - need for fitness activities is growing - concern about health is often more a female issue - healthy eating is on the rise - health awareness is linked to education
OBESITY December 13 - 19, 2003 An Expanding Problem
Childhood Obesity 38% of Canadian between 7 - 13 yrs are overweight, 16% are obese Canadian Medical Association Journal, November 2015 15 - 18% of the Chinese youth are obese World Health Organisation 2015 Obesity in children grew 20% in Germany and 100% in the UK in the last ten years
Health awareness ( cont ‘ d ) Obesity - 60 % of American adults are either overweight or obese - Britain has become one of the fattest nations in EUR - obesity is becoming a global problem - many countries face the double burden of under- nutrition and over- nutrition
Health awareness ( cont ‘ d ) Vegetarians - vegetarianism is both rising in profile and gaining popularity among a wide consumer base - motives for meat reduction: health, ethnics, and the environment - true vegetarianism is heavily concentrated in the younger age groups
NESTLÉ GROUP STRATEGY " To develop from an agro-food company towards one that cares about the wellness of body, soul and mind of our consumers. This will be the future heart-beat of our business." Peter Brabeck (CEO ) Blue Print for the Future May, 2002
NESTLÉ GROUP STRATEGY " We will advance from a food transformation company to a premium R&D dependent, innovation / renovation driven health and nutrition provider ". " We will grow from a respected trustworthy food company into a respected trustworthy health and wellness company ". Peter Brabeck
Environmental Awareness concern about the environment has become an issue to an increasing proportion of the population. The change from a minority, radical, political interest to a widespread self- interest has happened, or will in virtually all countries. - pressure should be expected from legislation; → pre- empt ! - the environmental debate has moved towards sustainable development - climate change protection through energy conservation - environmental awareness is linked to age, education, and gender
Media and Brand Communication The future of the media landscape is difficult to predict - all media ( from traditional print to www ) play an important role in the development of global culture. While local channels often dominate, the content is often foreign, often American - Media choice grows exponentially – media time for the consumer stays the same - social media is universally enjoyed - esp. targeting young people - Internet has changed the way we live our lives - Google, Facebook, Twitter,…… „fake news “ ……..!
pppööö Example NIVEA Germany
Example PORSCHE United States
The Role of Culture in Alliances, M & A: Example Renault-Nissan Some people consider cultural differences as a source of friction and conflicts. It is true. But cultural differences are basically a source of enrichment and progress. (Carlos Ghosn, 2000) Cultural differences can be viewed as either a handicap or a powerful seed for something new. What we see today [in Renault-Nissan] is that differences in culture are … seen more and more as a means of cross-fertilization and innovation. … So, it is a careful selection of best practices. (Carlos Ghosn, 2001) Sources: Carlos Ghosn, INSEAD Tokyo Forum, November 2000; Emerson 2001 ‘An interview with Carlos Ghosn, President of Nissan Motors and Industry Leader of the Year. Journal of World Business, 36, 3-10 .
Cross – Border Merger : DaimlerChrsyler Source: Kühlmann & Dowling (2005). DaimlerChrysler: A case study of a cross-border merger. In Stahl & Mendenhall (Eds.), Mergers and acquisitions: Managing culture and human resources . Stanford Business Press.
Example Nestlé Organisational Change Successful for People don’t like to 170 years but not valid today work this way any more It doesn’t attract the young generation Yesterday's Success, Tomorrow's Weakness ?
Nestlé on the Move Nestlé on the move To a flat and flexible organisation
Changing th the min indset fr from hie ierarchy to network We will always have a responsible leader and a hierarchy
When hie ierarchy is is ruli ling • Communications flow from the top - command style • Experience gives seniority • People work and want to do the best for the boss • Collaborators compete • There is disciple and obedience • The organisation operates in silos • It is task driven FROM Hierarchy Command Experience Competing Discipline National - Functional TASK ORIENTATION
This is is is a change in in th the Min indset TO FROM Hierarch y Network Command Alignment Experience Insight Competing Co-operation Discipline Initiative National - Functional Cross-border/Cross-functional TASK ORIENTATION RESULT ORIENTATION
What do German companies complain in in th the education of f graduates ? • Lack of social competence / soft skills * decisiveness * readiness for action / initiative * responsibility * success orientation * ability to work under pressure * ability to work in a team * intercultural competence * dealing with conflicts
Recommend
More recommend
